How G7 countries rank against each other based on the aggregate ambition level of emissions reduction targets set by companies in G7 countries. G7 companies are on path to a 2.7°C temperature increase. Amid a challenging global context of energy insecurity, rising inflation, and extreme weather in many regions, COP27’s goal to keep the Paris Agreement’s 1.5°Celsius target alive is more critical than ever. The G7’s private sector has an important role to play in that effort. Strong momentum in 2021, particularly in the runup to last year’s COP26, saw the number of corporates committing and setting climate targets increase rapidly. Yet, our analysis shows that the greenhouse gas (GHG) emissions reduction targets publicly disclosed by companies in G7 economies are still only ambitious enough to align with a 2.7°C decarbonization pathway — or 2.4°C if emissions from corporate supply chains, known as Scope 3 emissions, are excluded. Both are still well above the Paris Agreement’s goal to keep Earth’s temperature rise at or below 1.5°C — the upper temperature limit that science demands to avoid the most catastrophic environmental impacts. Data: CDP data, Oliver Wyman analysis. Graphic: CDP
How G7 countries rank against each other based on the aggregate ambition level of emissions reduction targets set by companies in G7 countries. G7 companies are on path to a 2.7°C temperature increase. Amid a challenging global context of energy insecurity, rising inflation, and extreme weather in many regions, COP27’s goal to keep the Paris Agreement’s 1.5°Celsius target alive is more critical than ever. The G7’s private sector has an important role to play in that effort. Strong momentum in 2021, particularly in the runup to last year’s COP26, saw the number of corporates committing and setting climate targets increase rapidly. Yet, our analysis shows that the greenhouse gas (GHG) emissions reduction targets publicly disclosed by companies in G7 economies are still only ambitious enough to align with a 2.7°C decarbonization pathway — or 2.4°C if emissions from corporate supply chains, known as Scope 3 emissions, are excluded. Both are still well above the Paris Agreement’s goal to keep Earth’s temperature rise at or below 1.5°C — the upper temperature limit that science demands to avoid the most catastrophic environmental impacts. Data: CDP data, Oliver Wyman analysis. Graphic: CDP

By Juliette Portala
6 September 2022

(Reuters) – Companies in the Group of Seven (G7) economies are failing to meet Paris Climate Agreement objectives, non-profit disclosure platform CDP and global management consultancy Oliver Wyman said on Tuesday, based on current corporate pledges to cut emissions. [Missing the Mark: 2022 analysis of global CDP temperature ratings –Des]

Under the global 2015 Paris deal, countries agreed to cut greenhouse gas emissions fast enough to limit global warming to 2 degrees Celsius (°C) and aim to keep the rise below 1.5°C, which scientists say would avert some of its worst effects.

Across the G7, which consists of Britain, Canada, France, Germany, Italy, Japan, and the United States, corporate emissions targets are overall on a 2.7°C warming trajectory, CDP and Oliver Wyman analysis showed.

“It is not acceptable for any country, let alone the world’s most advanced economies, to have industries displaying so little collective ambition,” Laurent Babikian, Global Director of Capital Markets at CDP, said in a statement.

“Momentum is growing, but as we approach COP27, we must get our 1.5°C goal off life support,” he added.

The emissions reduction targets publicly disclosed by European companies are now aligned with a 2.4°C decarbonization pathway, or 2.2°C if corporate Scope 3 emissions (value chain) are excluded. Germany, Italy, and the Netherlands — all with targets that support 2.2°C — have the best-performing corporate sectors, inclusive of all value-chain emissions. However, despite this progress, the average temperature ratings for corporates remain well above 1.5°C across all major European economies. Data: CDP data, Oliver Wyman analysis. Graphic: CDP
The emissions reduction targets publicly disclosed by European companies are now aligned with a 2.4°C decarbonization pathway, or 2.2°C if corporate Scope 3 emissions (value chain) are excluded. Germany, Italy, and the Netherlands — all with targets that support 2.2°C — have the best-performing corporate sectors, inclusive of all value-chain emissions. However, despite this progress, the average temperature ratings for corporates remain well above 1.5°C across all major European economies. Data: CDP data, Oliver Wyman analysis. Graphic: CDP

Collective emissions of U.S. and Canadian firms are seen matching the pace of decarbonisation required to restrict global warming to 2.8°C and 3.1°C, respectively, with the study stating that it is “largely the result of companies completely lacking targets, rather than targets that lack ambition”.

The study revealed that firms in Germany, Italy, and the Netherlands had the most ambitious targets to lower emissions in the G7, as they align with 2.2°C on average, while France is at 2.3°C and the United Kingdom at 2.6°C.

“The analysis highlights big differences in ambition and willingness across companies to take a lead with their targets, and the urgent need to spread best practices further and faster,” Partner, Financial Services at Oliver Wyman James Davis said.

Nearly 200 countries will convene at COP27 climate summit in Egypt next November, after what has been for many a devastating summer of drought, heatwaves and other climate-linked extremes.

G7 company emissions falling short of global climate goal, study shows